Answer:
a) Break even = 480.5 units ≈ 481 Million units
b) Breakeven = 8,014,162,500 units
Explanation:
calculations are in millions
Breakeven = fixed costs / contribution per unit
selling price per unit = $47063/400 = $117.66
Variable cost = ($18756*75%) + ($31755*50%) = $14067 +15877.50 =$29944.5/400 units =$74.86
contribution = $117.66-$74.86 = $42.80
fixed costs = ( $18756*25%) +( $31755*50%) = $4689 + 15877.50 = $20566.50
Breakeven = $20566.50/$42.80 = 480.5 units
b) calculations
fixed costs = 20,566,500 + 300,000,000
= 320,566,500
break even = $320,566,500 /0.04
= 8,014,162,500 units
